Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ettington. Clearly, the period of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Ettington have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. You should give careful consideration before putting off your Ettington lease extension. Putting off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Ettington,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ettington valuers.
In the wake of 6 months of lengthy negotiations with the freeholder of her two bedroom flat in Ettington, Rebecca started the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was concluded in January 2010. The landlord’s costs were negotiated to less than 450 GBP.
Last Winter we were e-mailed by Dr B López , who owned a basement flat in Ettington in October 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Ettington with a long lease were worth £173,800. The average ground rent payable was £60 collected every twelve months. The lease came to a finish on 9 May 2081. Having 55 years remaining we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.
Dr Edward Gray was assigned a lease of a ground floor flat in Ettington in June 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical homes in Ettington with an extended lease were valued around £235,200. The average ground rent payable was £45 collected monthly. The lease expired in 2092. Considering the 66 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.